DVD Catalyst-
Here's Lime Technology's official website for unraid.
Technology
Do you think I would be able to stream from this storage device?
Yes
I skimmed through the info on the site.
The "unraid" part is pretty cool, but the main portion I found on one of their product pages. I picked the lowest one, MD1510.
The MD-1510 includes Lime Technology's unRAID Server. Built upon the latest linux kernel, unRAID Server is a combination of outstanding Open Source software packages and proprietary applications.
unRAID Server boots from an internally mounted 2GB USB Flash device; the hard drives are only used to store user data. All configuration data is also kept on the Flash device.
Based on that, it probably already comes with a web-server on it, which might have to be enabled in its configuration settings, or it will likely be available for it on either their own website or floating around in the modding community. Either way, running a webserver on it is basically what you would need.
With the webserver on it, basically just put your video files in a location on the drive that is accessible by the webserver, and then all you need to do to be able to access your movies is open a browser, and visit the website's link on it like this:
http://yournasIP/yourvideofolder
If you type in my full website name and put /nook behind it, you will see what it will look like.
In order for files to stream (and this works for Android as well as iDevices and MP4-capable Blackberries) they have to be in the proper playable format.
The secret to the file actually streaming (aka progressive download) or for the file to download completely before it starts to play is a flag called "quicktimefaststart" that needs to be enabled in the video file.
If you use DVD Catalyst, you can enable the setting in Global Settings > Conversion, which will trigger dvdcat to enable it after the conversion is completed, or you can use my free mp4 server to do it, which has an option for enabling streaming on files you already have. Because the files are physically modified when this is done (unlike edittng metadata in iTunes), you can use the mp4 server to enable it, and then transfer the files over to your webserver.
If you want to try, it might be easier to pull a few sample trailers from my site that have streaming enabled. Since you know those work, using those for testing will eliminate a lot of headaches
and of course sized properrly for the device you want to use. The NOOKcolor will only accept 854x480 or less for a resolution, so if you intend to stream to anything else than the Xoom, keep in mind that you either have to create multiple copies of the same movie, or use the max settings of the most limited device.